JAL shares rise after Japan relisting

Shares in Japan Airlines (JAL) shot up more than three percent in early trade on Wednesday as the once-bankrupt company was relisted on the Tokyo Stock Exchange. The carrier was at 3,905 yen, up 3.03 percent on the offer price, three years after it became one of Japan's biggest ever corporate failures. The strong early performance comes after an $8.5 billion offering, the world's second biggest this year after Facebook. JAL's rebirth marked a stunning turnaround for the airline after it crashed into insolvency, owing 2.3 trillion yen ($29 billion) in one of the nation's worst corporate meltdowns. The embattled airline continued flying while it went through a rehabilitation process under court protection. The carrier, recently touted as the world's most profitable airline, received a huge government bailout and other concessions, drawing howls of protest from rivals including All Nippon Airways (ANA). Company President Yoshiharu Ueki told Dow Jones Newswires investors had questioned whether JAL could sustain its rapid upwards trajectory. "I'm confident that in five years, in 10 years our growth will still be sustainable," he said, citing the impact of restructuring. Ueki said the current precarious relations between Japan and China, who are embroiled in a worsening spat over disputed territory, would not have too much impact the airline. He said managers had experience of how to deal with a sudden fall in passenger numbers, citing the demand drop-off in the aftermath of last year's earthquake and tsunami. "We already have a core structure in place enabling us to act quickly," he said.